Maxis reported its Second Quarter 2017 (2Q17) financial result recently. There are now 11.66 million Maxis mobile subscribers. Maxis lost a total 147k subscribers between April to June 2017.
In the terms of Maxis Revenue Generating subscribers (RGS), there are 10.42 million subscribers compared to 10.67 million it had in 1Q17. The Telco lost 253k RGS in the quarter including some 272k users on prepaid. It added 41k postpaid RGS and lost 22k Wireless Broadband Subscribers. Maxis revenue generating subscribers (RGS) are defined as active line subscriptions that excludes those without revenue generating activities for more than 30 days.
There are 8.65 million prepaid subscribers, in the terms of market definition on comparable basis with other mobile operators. The Telco have been loosing prepaid subscribers since April-June 2015. It lost 167k subscribers in the recent quarter. There are 1.88 million Hotlink FAST prepaid users with an APRU of RM44.
The Telco has 2.84 million postpaid subscribers. It added 42k subscribers, mostly on the MaxisONE plan. Maxis said there are now 1.89 million users on the MaxisOne plan with an APRU of RM120.
In 2Q17, both Maxis prepaid and postpaid ARPU remained unchanged at RM37 and RM101 respectively.
Mobile Internet users are now lower at 8.5 million users from 8.6 million it had in 1Q17. There are 159k Home Connection (fibre) subscriptions.
Maxis claims that its has the fastest 4G LTE network in the country with an average speed of 30Mbps. It said 4G LTE coverage now stands at 89% nationwide on a comparable basis with other Telcos. Maxis 4G LTE users consumed an average 7GB a month with nearly 2/3 of users have 4G LTE smartphones.
Maxis performance in 2Q17:
Highlights: Year-on-Year (YoY) – Q2 2017 vs Q2 2016, according to Maxis:
- Service revenue up 3.3% to RM2,122 million against RM2,055 million a year ago, supported by sustained postpaid and prepaid performance amidst intense competition
- Postpaid revenue grew 2.0% to RM998 million from RM978 million a year ago, with a solid base of nearly 1.9 million MaxisONE customers with monthly average revenue per user (ARPU) of RM120
- Prepaid revenue grew 2.9% to RM984 million from RM956 million in Q2 last year. Hotlink FAST, 4G prepaid market leader with high ARPU of RM44, has more than 1.8 million subscriptions which has almost tripled from last year
- Normalised EBITDA grew 9.3% to RM1,104 million from RM1,010 million a year ago reflecting the steady revenue growth and excellent cost control. EBITDA margin (on service revenue) was equally strong at 52.0%
- Normalised profit after tax (PAT) grew 14.2% to RM484 million from RM424 million driven by higher EBITDA and lower property, plant and equipment related charges
- Declared a second interim dividend of five sen per share
Morten Lundal, Chief Executive Officer of Maxis Berhad said, “Q2 was a quarter of so many positives. We delivered strong financials with an all-time high customer satisfaction score to top them off. Our priority is to continue to deliver a great network experience and create an unmatched customer experience across all channels. This will only get better with our ambitions for a full digitalisation and we are on track towards this.”